If you’ve got a $1 million nest egg you should be covered for retirement, right? Well, it depends on where you live, finds a study from SmartAsset. SmartAsset put together a list of how much a cool million dollars would last in retirement in each major U.S. city by calculating the average cost of living for retirees in those cities.
McAllen, Texas is where your $1 million will go the furthest. With the lowest food and healthcare expenses, a $1 million nest egg would last 42.29 years in the south Texas city. The number two spot goes to Harlingen, Texas -- which like McAllen is located in the Rio Grande Valley. Your $1 million will last 39.46 years there. Other cities on the list, starting from number 3, are Richmond, Indiana; Kalamazoo, Michigan; Cleveland, Tennessee; Martinsville, Virginia; Knoxville, Tennessee; Ashland, Ohio; Jonesboro, Arkansas; and Norman, Oklahoma.
If you’re interested...here’s a more in depth explanation of SmartAssest’s calculation...SmartAsset looked at data from the Bureau of Labor Statistics on average spending of U.S. seniors. Then, they applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels. SmartAsset says they assumed the $1 million would grow at a real return of 2%. Then, they divided $1 million by the sum of those annual numbers.